Limited changes in 2021-2 EBITDA estimates following the quarterly call. Our 2021 EBITDA estimate remains $21.5 million. Looking into next year, we expect a rebound in both businesses, and our EBITDA estimate is $43.0 million, based on EBITDA margin of 6.5%.Backlog rebound is positive and focus shifts to backlog margin profile. After dropping for several quarters, backlog rebounded strongly by $178 million to $573 million driven by successful Marine bidding. The backlog margin profile was discussed on the quarterly call, but limited specifics were offered. Higher backlog adds some visibility to the 2022 outlook, with about 75% to be realized over the next year, per the 3Q2021 10-Q filed late Friday.Cash flow moderating, but asset sales have improved financial flexibility. Buy backs now seem less likely. Asset sales have improved financial flexibility, and growth-oriented investments, like asset upgrades and/or acquisitions, are preferred, so stock buy backs now seem unlikely.Monetizing idle/non-core assets remains a focus, and more specific details on East West Jones were offered. When asked on the quarterly call, management disclosed that an attractive offer was accepted and a preliminary sales agreement (PSA) has been signed. The sale of the East West Jones asset could generate net proceeds in the $35 million range due to minimal tax leakage if the sale closes, probably in a 1H2022 event.No change in Outperform rating and price target of $8.25/share. We view the past two quarters as hiccups and believe that the current stock price doesn't appear to fairly reflect the prospects for better execution and higher profitability triggered by the ISG restructuring and solid market fundamentals. Rebounding profitability, lower financial leverage after the Tampa yard sale and attractive valuation of 4.0x 2022E EBITDA supports our view that the risk/reward profile remains compelling. Potential catalysts include added awards, infrastructure legislation and the closing of real estate sales (Port Lavaca in 4Q2021 and East West Jones in 2Q2022). Read More >>